Fri Nov 30, 2012
* Wheat expected to bounce back on dry U.S. weather
* Corn could gain due to poor South American stocks
By Mayank Bhardwaj
NEW DELHI, Nov 30 (Reuters) - Chicago wheat futures fell for the second straight session on Friday, dragged down by weak exports from the United States and profit taking after a consistent rally this week.
But wheat is on course to finish the week more than 2 percent higher and also post a tiny monthly rise.
"Some profit taking and poor export numbers released by the USDA set the bearish trend for wheat which had been posting continuous gains this week," said Lynette Tan, an analyst with Phillip Futures in Singapore.
U.S. export sales of wheat and corn were the smallest in three weeks last week, with each missing traders' expectations, U.S. Agriculture Department (USDA) data showed on Thursday.
But wheat is expected to rise again from next week as fundamentals remain bullish, Tan said.
"There are indications that the very reason behind this week's rally in wheat will again push wheat higher next week," she said.
Dry weather conditions in the United States, the world's biggest exporter of the grain, had spurred the longest rally in wheat futures since July before prices eased as traders took profits on Thursday.
Concerns over yield and output of the newly seeded hard red winter wheat remain as drought conditions hit farms in the U.S. Plains.
Also, expectations of a lower exportable surplus from the Back Sea region would lend support to wheat, Tan said.
Chicago Board Of Trade December wheat dropped 0.7 percent to $8.62-1/2 by 0510 GMT, after falling 0.7 percent in the previous session. The most active March wheat also fell 0.6 percent to $8.80 a bushel.
This year drought hit the Black Sea countries, which normally produce about 10 percent of the world's wheat, forcing them to slash their harvest and exports.
Corn also fell due to weak export data. But corn was also expected to inch back due to falling stocks in South America, Tan said.
December corn fell 0.3 percent to $7.49-1/4 a bushel, after shedding 5-1/4 cents on Thursday, its first drop in four sessions.
Soybean fell after registering a three-week rise in the previous session, buoyed by strong soy products exports and forecasts of wet weather in Argentina, the world's biggest exporter of soyoil and soymeal.
January soybeans fell 0.2 percent to $14.45 per bushel.
Grains prices at 0510 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 880.00 -5.50 -0.62% -1.37% 876.79 51
CBOT corn 756.25 -2.50 -0.33% -0.53% 743.27 54
CBOT soy 1445.00 -3.00 -0.21% -0.09% 1479.19 54
CBOT rice $15.16 $0.05 +0.30% -0.23% $15.07 62
WTI crude $87.72 -$0.35 -0.40% +1.42% $86.52 53
(Editing by Jacqueline Wong)
* Wheat expected to bounce back on dry U.S. weather
* Corn could gain due to poor South American stocks
By Mayank Bhardwaj
NEW DELHI, Nov 30 (Reuters) - Chicago wheat futures fell for the second straight session on Friday, dragged down by weak exports from the United States and profit taking after a consistent rally this week.
But wheat is on course to finish the week more than 2 percent higher and also post a tiny monthly rise.
"Some profit taking and poor export numbers released by the USDA set the bearish trend for wheat which had been posting continuous gains this week," said Lynette Tan, an analyst with Phillip Futures in Singapore.
U.S. export sales of wheat and corn were the smallest in three weeks last week, with each missing traders' expectations, U.S. Agriculture Department (USDA) data showed on Thursday.
But wheat is expected to rise again from next week as fundamentals remain bullish, Tan said.
"There are indications that the very reason behind this week's rally in wheat will again push wheat higher next week," she said.
Dry weather conditions in the United States, the world's biggest exporter of the grain, had spurred the longest rally in wheat futures since July before prices eased as traders took profits on Thursday.
Concerns over yield and output of the newly seeded hard red winter wheat remain as drought conditions hit farms in the U.S. Plains.
Also, expectations of a lower exportable surplus from the Back Sea region would lend support to wheat, Tan said.
Chicago Board Of Trade December wheat dropped 0.7 percent to $8.62-1/2 by 0510 GMT, after falling 0.7 percent in the previous session. The most active March wheat also fell 0.6 percent to $8.80 a bushel.
This year drought hit the Black Sea countries, which normally produce about 10 percent of the world's wheat, forcing them to slash their harvest and exports.
Corn also fell due to weak export data. But corn was also expected to inch back due to falling stocks in South America, Tan said.
December corn fell 0.3 percent to $7.49-1/4 a bushel, after shedding 5-1/4 cents on Thursday, its first drop in four sessions.
Soybean fell after registering a three-week rise in the previous session, buoyed by strong soy products exports and forecasts of wet weather in Argentina, the world's biggest exporter of soyoil and soymeal.
January soybeans fell 0.2 percent to $14.45 per bushel.
Grains prices at 0510 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 880.00 -5.50 -0.62% -1.37% 876.79 51
CBOT corn 756.25 -2.50 -0.33% -0.53% 743.27 54
CBOT soy 1445.00 -3.00 -0.21% -0.09% 1479.19 54
CBOT rice $15.16 $0.05 +0.30% -0.23% $15.07 62
WTI crude $87.72 -$0.35 -0.40% +1.42% $86.52 53
(Editing by Jacqueline Wong)
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